a$)$ Classify the various quality costs into the different quality cost categories $($prevention$,$ appraisal, internal failure, external failure$).$

b$)$ Analyze the costs$/$costs categories and suggest which areas the firm should address first in an effort to improve their quality.

Cost Elements Amount

Checking outbound boxes for errors $$ Appraisal Cost $$607,750$

Quality planning $$ Prevention Cost $$10,525$

Downtime due to conveyor$/$computer problems $$ Internal Failure $$342,125$

Packaging waste $$ Internal Failure $$68,000$

Incoming product inspection $$ Appraisal Cost $$51,000$

Customer complaint rework $$ External Failure $$34,000$

Correcting erroneous orders before shipping $$ Internal Failure $$36,450$

Quality training of associates $$ Prevention Cost $$25,925$

Quality improvement projects $$ Prevention Cost $$17,425$

Other waste $$ Internal Failure $$36,125$

Correction of typographical errors$--$pick tickets $$ Internal Failure $$11,475$